Morgan Stanley Raises Price Target on AutoZone (AZO) After Meeting with Management

Morgan Stanley reiterated an Equalweight rating on AutoZone (NYSE: AZO), and raised the price target to $820.00 (from $810.00), after hosting meetings with management last week. Mogan Stanley's key takeaway from the meeting was that investments being made on the Commercial side of the business should accelerate EBIT dollar growth, while not harming EBIT margin.

Analyst Joshua Siber commented, "We hosted meetings last week with AZO management including EVP/CFO Bill Giles and VP IR Tax & Treasury Brian Campbell. Our key takeaway is that investments being made on the Commercial side of the business should accelerate EBIT dollar growth, while not harming EBIT margin. These investments along with favorable industry fundamentals lay a path for double digit EPS growth over the next 5 years. We see value in this type of growth for a stock trading at a ~16x P/E multiple and believe risk/reward is positive. We are raising our price target to $820, 10% upside from current levels."

For an analyst ratings summary and ratings history on AutoZone click here. For more ratings news on AutoZone click here.

Shares of AutoZone closed at $743.59 yesterday.

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